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Unit 2 MM-1

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21 views

Unit 2 MM-1

Uploaded by

cutemohini5
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Marketing Environment

There are two elements within the external


marketing environment; micro and macro. These
environmental factors are beyond the control of
marketers but they still influence the decisions .
Micro Environment Factors
Suppliers: Suppliers can control the success of the organisation
when they hold power. The supplier holds the power when they
are the only or the largest supplier of their goods; the buyer is
not vital to the supplier’s business; the supplier’s product is a
core part of the buyer’s finished product and/or business.
Imagine they are the link in the value delivery processes and
what impact this may have.

Resellers: If the organisation’s product or service is taken to


market by third-party resellers or market intermediaries such as
retailers, wholesalers, etc. then the marketing success is
impacted by those third-party resellers. For example, if a retail
seller is a reputable name then this reputation can be leveraged
in the marketing of the product. They are the link between the
organisation and the customer, so are important due to factors
such as promotion and distribution.
Customers: Who the customers are (B2B or B2C, local or international,
etc.) and their reasons for buying the product will play a large role in
how the organization approaches the marketing of its products and
services to them. It is also important to note the stability of demand
and how this can impact the outcomes of any marketing efforts.

The competition: Those who sell the same or similar products and
services as the organization is the market competition, and the way
they sell needs to be taken into account. In reality, every organization
that sells something similar is classed as competition. What impact do
their prices and product differentiation have? How can the organization
leverage this to reap better results and get ahead of the competition?

The general public: The organization has a duty to be a good corporate


citizen. Any actions the company takes must be considered from the
angle of the general public and how they are affected. The public has
the power to help the organization reach its goals; just as they can also
prevent the organization from achieving them. The opinion of the
public can play a key part in the success of any marketing efforts.
Macro Environment Factors
Economic factors: The economic environment can impact both the
organization's production and the consumer’s decision-making
process. These can include interest rates, recession, demand and
supply for example.

Natural/physical forces: The Earth’s renewal of its natural resources


such as forests, agricultural products, marine products, etc. must be
taken into account. There are also natural non-renewable resources
such as oil, coal, minerals, etc. that may also impact the
organization's production. In the broader picture, these can be linked
to climate change, pollution and new law and regulations that
regulate the environment.

Technological factors: The skills and knowledge applied to the


production, and the technology and materials needed for the
production of products and services can also impact the smooth
running of the business and must be considered. Automation,
connectivity, speed and performance are all necessary
considerations.
Political and legal forces: Sound marketing decisions should
always take into account political and/or legal developments
relating to the organization and its markets.

Social and cultural forces: marketing must consider changing


in culture and society when creating successful marketing
activities. These include aspects such as demographics,
consumer attitudes, buying patterns.

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